Monday, August 18, 2008

Next Stop For Lego: Cyberspace

Toymakers, like other globalcompanies, have been facing soaring oil and raw material prices. But anaggressive cost-cutting program has helped Lego, theDanish toy company, offset these problems. In an interview withForbes.com, its chief executive, Joergen Vig Knudstorp, talks aboutother challenges toymakers face and his ambitions for growth in theonline world.

Forbes: What are the challenges in the toy industry?

Joergen Vig Knudstorp: At the corporate front, an increase in rawmaterial prices and transportation costs that are hitting everyone. Onthe demand side, children tend to get older at a younger age, in manyparts of the Western world. We face the penetration of the electronicmedia as now children spend more on electronics. These trends arestrengthening. Article Link